Legal personality and London Approach: Difference between pages

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The essential feature of a company is that it exists as a separate legal entity distinct from its members.  
A non-statutory, informal framework introduced with the support of the Bank of England in  1970 for dealing with financially distressed companies.


The London Approach covers temporary support operations mounted by banks and other lenders for a company or group in financial difficulties, pending its possible restructuring.


This is the case even if one member owns all the shares. This is known as the separate personality principle. 


This principle underpins the whole of company law.
Applicable only to firms which are financially distressed but which could have a viable future.




The most important consequence of the separate personality principle is that of limited liability.
== See also ==
* [[Insolvency]]


The company is liable without limit for its own debts but, in a limited liability company, the members, as distinct from the company, have limited liability.


== References ==
1. http://www.bba.org.uk/policy/article/london-approach/fx-and-money-markets-policy/


== See also ==
2. [[Media:http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb940208.pdf]]
* [[Company]]
* [[Legal person]]
* [[Limited liability]]
* [[Separate personality principle]]
 
[[Category:Compliance_and_audit]]

Revision as of 15:56, 9 October 2013

A non-statutory, informal framework introduced with the support of the Bank of England in 1970 for dealing with financially distressed companies.

The London Approach covers temporary support operations mounted by banks and other lenders for a company or group in financial difficulties, pending its possible restructuring.


Applicable only to firms which are financially distressed but which could have a viable future.


See also


References

1. http://www.bba.org.uk/policy/article/london-approach/fx-and-money-markets-policy/

2. Media:http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/qb940208.pdf

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